Village E‐Commerce Reduces Rural Household Consumption Inequality: Evidence From Rural China

ABSTRACT The relationship between the digital economy and social equity has attracted widespread attention. However, the impact of e‐commerce penetration in villages on rural household consumption inequality remains unexplored. To fill this research gap, this study adopts the staggered difference‐in‐differences (DID) to analyze the impact and the underlying mechanisms, taking the Chinese National Rural E‐commerce Comprehensive Demonstration Policy as a quasi‐natural experiment. We find that e‐commerce penetration in villages significantly reduces rural household consumption inequality, a result that remains robust after conducting a series of robustness checks. Regarding consumption patterns, e‐commerce penetration in villages significantly reduces inequality in survival‐oriented consumption, while its impacts on inequality in hedonistic consumption and development‐oriented consumption are not significant. The regional heterogeneity analysis reveals that e‐commerce penetration in villages significantly reduces the consumption inequality of rural households located in less‐developed counties, while its effect is statistically insignificant in developed counties. The mechanism analysis reveals that e‐commerce penetration in villages decreases rural household consumption inequality through reducing their purchasing transaction costs, income inequality, and digital divide. This study provides insights for addressing rural household consumption inequality in China and other developing countries.

Authors

Institutions

Publication Details

Journal
Review of Development Economics
Published
2026-02-09
DOI
https://doi.org/10.1111/rode.70135
Primary Topic
ICT Impact and Policies
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Village E‐Commerce Reduces Rural Household Consumption Inequality: Evidence From Rural China

Xiaoyong Xiao, Wuyang Hu, Qingsong Tian, Yong Xia
Review of Development Economics
ICT Impact and Policies
article

Village E‐Commerce Reduces Rural Household Consumption Inequality: Evidence From Rural China

Xiaoyong Xiao, Wuyang Hu, Qingsong Tian, Yong Xia
article en

Abstract

ABSTRACT The relationship between the digital economy and social equity has attracted widespread attention. However, the impact of e‐commerce penetration in villages on rural household consumption inequality remains unexplored. To fill this research gap, this study adopts the staggered difference‐in‐differences (DID) to analyze the impact and the underlying mechanisms, taking the Chinese National Rural E‐commerce Comprehensive Demonstration Policy as a quasi‐natural experiment. We find that e‐commerce penetration in villages significantly reduces rural household consumption inequality, a result that remains robust after conducting a series of robustness checks. Regarding consumption patterns, e‐commerce penetration in villages significantly reduces inequality in survival‐oriented consumption, while its impacts on inequality in hedonistic consumption and development‐oriented consumption are not significant. The regional heterogeneity analysis reveals that e‐commerce penetration in villages significantly reduces the consumption inequality of rural households located in less‐developed counties, while its effect is statistically insignificant in developed counties. The mechanism analysis reveals that e‐commerce penetration in villages decreases rural household consumption inequality through reducing their purchasing transaction costs, income inequality, and digital divide. This study provides insights for addressing rural household consumption inequality in China and other developing countries.

Review of Development Economics
Huazhong Agricultural University (CN), Wuhan Business University (CN), The Ohio State University (US), Hubei University (CN)
No poverty
Openalex Percentile: Top 65%
ICT Impact and Policies
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Village E‐Commerce Reduces Rural Household Consumption Inequality: Evidence From Rural China — Xiaoyong Xiao, Wuyang Hu, et al. · Review of Development Economics (2026) | TGRS Research Map | TGRS